Cefic’s March Chemical Trends Report Is Out!

The road to recovery requires a bold business plan

Europe has been more impacted by the energy crisis than other regions, structural issues need to be addressed. the EU27 chemical industry has been gradually losing its competitive edge in the global market. As energy-intensive industry, high energy costs are the Achilles heel of our industry, especially when compared to the United States and Middle East who have the advantage of lower energy costs. But energy costs are not the only contributing factor. Stalling investments in Europe could also be attributed to regulatory uncertainty, unclarity about de-risking schemes for innovations, and overall lack of confidence and predictability in Europe’s industrial policy, making it cumbersome to do business in the European Union. To ensure Europe becomes an interesting place for investment, we need a business case, as called for in Antwerp Declaration for a European Industrial Deal.

Confidence in the chemical sector has been seeing an upward trend, the trade balance is recovering as destocking seems to be coming to an end. The level of inflation is expected to fall from 5.4% in 2023 to 2.3% in 2024 (source: European Central Bank, macroeconomic projections, March 2024). Even though these are positive signs, It is too early to say if this trend is the beginning of an upcycle.

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